FACULTY OF COMMERCE

DEPARTMENT OF ACCOUNTING AND FINANCE

BACHELOR OF SCIENCE HONOURS DEGREE IN HOSPITALITY AND TOURISM

NAME : ASHLEY SIBANDA

STUDENT NUMBER :L0225862F

LEVEL OF STUDY :2.2

MODULE : ENTREPRENEURSHIP

COURSE CODE : 2206

LECTURER : L NDLOVU

BUSINESS PLAN

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 Business Plan

TRENDY TREADS SNEAKERS

[email protected]

0718284200 trendy treads

https.//www.trendytreads

Ashley Sibanda

Nicole Moyo

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Table of contents

- Executive summary........................4

- Company overview.........................7

- Market analysis...............................8

- Marketing plan................................10

- Sales plan..........................................10

- Operations plan...............................10

- Financial plan...................................14

- Appendix............................................

legal documents

supplementary information

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EXECUTIVE SUMMARY

Trendy Treads is a sneaker mobile shop located in Bulawayo. The shop specialises in providing
it's customers with high quality shoes from which ever brand, this can be for sports wear, casual
or even classy all depending on the fashion sense and style. The strategy of Trendy Treads is to
have your sneakers delivered at your door step in the comfort of your own home with no extra
charges but getting high quality shoes for whatever occasion from different brands including
Nike, Puma ,Adiddas and even get yourself personalised sneakers to match your style and our
sneakers are made in a way that they meet the specific needs of each customer.

Target Market

The target market for the sneaker shop will be broken down as follows:

Demographic: It includes both men and women, ranging in age from teens to adults

Psychographic

Sneaker collecters: These are individuals who are passionate about sneakers and collect them
as a hobby. They may have a large collection of sneakers and may be willing to pay a premium
price for rare or limited-edition sneakers. They're also likely to be active on social media, where
they share photos of their sneakers and discuss their collection with others.

Sneaker enthusiastis : These individuals enjoy wearing sneakers as part of their everyday style
and may be more likely to purchase sneakers that are comfortable and fashionable. They may not
have as large of a collection as sneaker collectors, but they may still be willing to pay a higher
price for sneakers that are unique or have a certain style. They may also be active on social
media, sharing photos of their outfits and sneakers.

Casual shoppers : These individuals buy sneakers for everyday use and may not have a strong
interest in collecting sneakers. They may be more price-sensitive and prefer to purchase sneakers
at a lower price point. However, they may still be interested in trendy or fashionable sneakers.

Geographic: It is set to reach the target market both near and far.

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Benefits to the customer

Variety: The sneaker shop offers a number of benefits to its customers. For example, customers
can enjoy a wide selection of sneakers, easy comparison of products, and the ability to purchase
products from anywhere at any time.

Expertise: The employees have knowledge, patience and understanding to understand the
customers needs and wants.

Quality: It is our main goal to only provide high quality sneakers at an affordable price.

Customisation: Customers can request specific designs and colours to match their style.

PERSONAL DETAILS

Name Ashley Sibanda

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Identity Number 08-2084428 D 19

Date of Birth 17 September 2002

Address 170 Matopos Road Eloana Bulawayo

Business Address Mobile

Key Director Ashley Sibanda

Contact Number 0718284200

Business Type Sneakers

Scope Regional

Employment Creation 2 employees

Loan Source Small business grants

Loan Amount $3 000.00 only

Loan Term 24 Months

COMPANY DESCRIPTION

Trendy Treads sneakers is a sneaker company that is dedicated to providing high-quality,

fashionable sneakers at an affordable price. We believe that everyone should have access to

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stylish, comfortable sneakers, regardless of their budget. Our goal is to make it easy for people to
find the perfect pair of sneakers, whether they're looking for sneakers for everyday wear, sports,
or special occasions. We offer a wide range of styles, colors, and sizes, and we're always adding
new products to our collection. We pride ourselves on our customer service, and we're always
available to help.We also offer in-app purchases which allow customers to buy products directly
from the app, which can make the buying process more convenient and increase sales.

For a start one or two employees may be sufficient. However, as the business grows, a team of
five to ten employees may be needed to handle all the aspects of the business, including
marketing, customer service, inventory management, and shipping.

Name ID No. Physical Address Date

Ashley Sibanda 08-2084428 D 170 Eloana 24/01/2024 Chief
Executive
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Officer

Nicole Moyo 08-3004552 D 12866 Nkulumane 12 24/01/2024 General

19 Manager

VISION, MISSION AND OBJECTIVES

Vision
Our vision is to create a world where everyone has access to high-quality, stylish, and affordable
footwear.

Mission
Our mission is to bring joy and comfort to the world through our innovative and stylish sneakers.
Objectives
1. To increase mobile app downloads by 25% in the next 3 months.
2. To improve the user experience of our mobile app by reducing load times and increasing
ease of use.

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 3. To increase the average order value of purchases made through our mobile app by 10%.
4. To increase customer engagement on our mobile app through push notifications and
personalized offers.
5. To drive repeat purchases through loyalty programs and personalized recommendations.
6. Objectives are the specific, measurable goals that a business aims to achieve.
7. To launch a new line of sustainable sneakers made from recycled materials.
8. To increase brand awareness through social media and marketing campaigns.

MARKET ANALYSIS

Below is how the shop will analyse its marketing efforts:

Marketing Mix

Products: We focus on comfort, style, and sustainability and we also, focus on product
availability, such as ensuring that products are always in stock and ready to ship.

Price: We will offer value-based pricing which is a strategy that takes into account the
perceived value of a product or service, rather than just the cost of production, as it is a
customer-centric approach that aims to maximize profit by charging a price that reflects the value
customers place on the product.

Promotion: We will use digital marketing methods such as the website, social media platforms
and app advertisements to reach to a wider audience. In addition, we'll offer run referral
programs or offer incentives for repeat purchases.

Place: Since our business is a mobile sneaker shop, our primary "place" is our mobile app. That
means it's important to make sure our app is easy to use, visually appealing, and provides a great
customer experience. We also consider using geofencing to target customers in specific locations
or offering same-day delivery.

SWOT ANALYSIS

STRENGTHS

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 1. Unique products.
2. Strong brands.
3. Easy-to-use mobile app.
4. Customer oriented.

WEAKNESSES

1. Limited inventory.
2. High shipping costs.
3. Lack of brick-and-mortar stores.

OPPORTUNITIES

1. Expanding into new markets.

2. Developing new products.
3. Partnering with other brands.

THREATS

1. New competitors.
2. Changing customer preferences.
3. Economic downturns.

TARGET MARKET

As a mobile shop, Trendy Treads an ideal customer for a mobile sneaker shop might be someone
who is tech-savvy, fashion-conscious, and interested in the latest trends. They might be in their
20s or 30s, have a disposable income, and live in a major metropolitan area. They might be
looking for unique, limited-edition sneakers that aren't available in traditional retail stores.
OPERATIONAL PLAN
As we try to expand, our plan is to create an engaging atmosphere that will draw customers in
while providing quality products that cannot be found elsewhere.

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- Inventory management: We will use software to track inventory

- Fulfillment: you'll need to decide how you'll package and ship orders, what shipping options
you'll offer, and how you'll handle returns. For customer service, you'll need to decide how you'll
handle customer inquiries, what channels you'll use for support, and how you'll measure
customer satisfaction. Are these examples helpful?

- Customer service: We will ensure that all customer queries are met.

- Growth strategy:

- Product development: Creating new products to meet customer needs.

- Market penetration: Reaching new customers within your current market.

- Market expansion: Expanding into new markets, such as new geographical areas.

- Diversification: Offering new products or services to new markets.

- Strategic partnership: Partnering with other businesses to reach new customers.

- Timeline: Launching the website.

- Launching the mobile app.

- Expanding into new geographical markets.

- Adding new product lines.

- Reaching a certain number of customers or sales.

Staffing: We will hire people with knowledge when it comes to sneakers.

Equipment: We will invest in equipment that help in personalising sneakers.

Quality control: Quality control is a crucial part of running a successful mobile sneaker shop.
You'll need to have a system in place to ensure that the products you sell are of high quality. This
might include:

- Product testing: Checking products for defects or other issues before they're sold.

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- Return policy: Allowing customers to return or exchange products if they're not satisfied.

- Customer feedback: Gathering feedback from customers to improve the quality of your
products.

Delivery: Offering different shipping options, such as standard, express, and overnight shipping.

- Allowing customers to track their orders.

- Providing clear and accurate delivery estimates.

- Offering delivery updates via email or SMS.

Maintenance: Maintenance is another important aspect of running a mobile sneaker shop. This
includes keeping our website and mobile app up to date and functioning properly. It also includes
regularly updating our product listings and pricing.

MANAGEMENT PLAN

The management team for Trendy Treads is led by Ashley Sibanda who is the sole owner of the
mobile business. She has always been fascinated by sneakers until an idea of starting a mobile
sneaker shop popped up in her head.

Ashley is the co-founder and Head at Trendy Treads. She spent years analysing people when it
comes to their choices where sneakers are concerned.She expertises in providing high quality
sneakers at an affordable price, creating confidence in her customers. Her creativity in making
personalised sneakers for different kinds of people has made her the number one go to mobile
shop for whatever occasion..

Then we have Nicole Moto who acts as the manager and also the marketing of the business. She,
acts as a strategic partner to Ashley by overseeing operations, developing marketing strategies
and securing connections with suppliers. Nicole’s dedication to customer service ensures that
every customer gets the best possible experience when ordering from Trendy Treads. Her
commitment to excellence has enabled them to consistently provide quality products at
reasonable prices.

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Together, Ashley and Nicole have turned what started as fascination into a successful business
that specialises in providing high quality sneakers through ordering online.

Organisational Structure CEO/OWNER

Marketing and
Communications Manager

Shop assistant 1 Shop Assistant 2

Personnel Plan

Two shop assistants should at least have a degree or certificate in Marketing or Tourism and
hospitality.

Staff training and development

- Orientation: Helping new employees learn about the company and their roles.

- On-the-job training: Teaching employees how to perform their specific tasks.

- Continuing education: Encouraging employees to learn new skills and keep up with industry
trends.

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Management policies and procedures

Management policies and procedures are important for setting expectations and ensuring
consistency in the way the business is run. For a mobile sneaker business, some policies and
procedures we consider include:

- A social media policy, outlining what employees can and cannot post on social media.

- A dress code policy, outlining the appropriate attire for employees.

- A return and exchange policy, outlining the process for customers who want to return or
exchange items.

- A privacy policy, outlining how customer data is collected and used.

FINANCIAL PLAN

Loan purpose:

The loan will be used for Working capital and Capital Expenditure

The CEO intends to buy more equipment for the company.

Purpose of Loan Amount Required ($)

Working capital $2000
Capital Expenditure $4000
Total Amount $6000

Expenditure details:
Expenditure Item Value
Mobile app $350
Website $50
Mobile devices $500
laptops $700
Printer $300

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 Vehicle $4100
TOTAL $6000.00

Annual Sales Projection

Product 2024 2025 2026 2027 2028

Nike 30 500 34 250 38 375 42 912.50 47 903.75
Puma 7 300 8 130 9 043 10 047.30 11 152.03
Addidas 19 300 21 430 23 773 25 350.30 27 185.33

Forecast for Monthly sales distribution

Product Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cakes 2000 2000 2000 3000 3000 3000 3500 4000 4000 4500 4500 5000
Pies 500 500 500 500 700 700 750 750 800 800 800 1000
Cupcakes 800 900 1000 1200 1200 1500 1500 2000 2200 2500 3000 3500

The table above is a projection of the total units to be sold in the coming year, The Trendy
Treads has set these annual sales targets based on market research, and the forecast has a
variance of + -10%.

Business Assets

Business Assets
Item Make Serial Year of Estimated
Number purchase Market value
1 Honda fit New shape 2020 $4100
2 Phone Samsung 2021 $400
3 Core i5 Laptop HP 2023 $700
4 LaserJet Printer- HP 1102 2024 $300

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 Scanner
Family/Household Assets attached to the business
1 Refrigerator Samsung 2019 $700
2 Cellphones Samsung A22 2022 $450
Total Value of Assets $1150

Trendy Treads Sneaker Cash Flow projection

Month 1 2 3 4 5 6 7 8 9 10 11 12
Balance B/F 200 912 975 1037 1200 1502 1735 1842 2020 2267 2365 2762
Sales 1200 1200 1200 1550 1750 1850 2000 2200 2300 2500 2800 3200
Loan/ Prize 3000 - - - - - - - - - - -
Own - - - - - - - - - - -
Contributio
n
Total 4400 2112 2175 2587 2950 3352 3735 4042 4320 4767 5165 5962
income
Expenses 100 100 150 200 220 230 240 250 260 260 300
Nike 100
Puma 80 80 80 100 100 120 150 150 150 170 170 180
Adiddas 50 50 50 60 80 80 80 100 100 100 100 100
Slides 40 40 40 40 40 40 70 70 70 100 100 100
Postage/ 20 20 20 30 30 30 30 30 30 30 30 30
telephone
Transport 20 20 20 20 20 20 25 25 25 30 30 30
Colourings 160 160 160 160 260 260 300 300 320 320 320 410
Salaries 300 300 300 300 300 400 500 500 600 800 800 800
Equipment 2000 - - - - - - - - - - -
Loan 137 137.5 137.5 137. 137. 137. 137. 137. 137. 137. 137. 137.5
repayment 5 5 5 5 5 5 5 5
Establishme 60 - - - - - - - - - - -

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nt fee
Company 280 - - 100 - - - 100 - - - 200
Reg/ Tax
Bank 50 20 20 30 30 30 40 40 45 45 45 45
charges
Packaging 30 30 30 30 50 50 50 50 50 60 60 60
Transport 50 50 50 50 50 80 80 80 80 100 100 100
Utility 30 30 30 30 50 50 50 50 50 50 50 50
charges
Rentals 100 100 100 100 100 100 150 150 150 200 200 200
Total 3487 1137. 1137. 1387 1447 1617 1892 2022 2052 2402 2402 2842.
Expenses 5 5 .5 .5 .5 .5 .5 .5 .5 .5 5
Balance 912 975 1037. 1200 1502 1735 1842 2020 2267 2365 2762 3012
B/D 5 .5 .5 .5 .5

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